The Agricultural Marketing Service (AMS) of the USDA has issued a final rule that amends the pricing provisions in 11 Federal Milk Marketing Orders (FMMOs). These changes include updating milk composition factors and surveyed commodity products, revising Class III and IV formula factors, and modifying the Class I skim milk price calculation. Most amendments will take effect on June 1, 2025, while certain adjustments related to skim milk composition will be effective December 1, 2025. This rule aims to more accurately reflect current market conditions and ensure orderly milk marketing.
Simple Explanation
The government has made new rules to change how the price of milk is calculated to make it fair and match today's market better. These changes will start in June 2025, and some parts will start in December 2025, to make sure everyone selling milk plays by the same rules.